Bachelor's thesis: A Quantitative Analysis of Bitcoins

[ties.ende]

Hey,

I wrote a bachelor's thesis on Bitcoins for the university of Groningen, the Netherlands -- a quantitative analysis of bitcoins to be more precise.
This is the abstract:

"In this paper, the correlations between the returns of Bitcoins and returns of real financial assets is under consideration. To that end, 6-hourly data on the exchange rate of Bitcoinsin Euro’s and daily data on the closing yield of German & Spanish 10 year government bonds were obtained. First, an overview of the asset under consideration, Bitcoins, and the techniques used in this paper is given. These techniques comprise of the General Auto-Regressive Conditional Heteroskedasticity method for modelling the time-varying volatility of financial time series and the Dynamic Conditional Correlation method for modelling the time-varying correlation between various financial assets. After practising these methods on the Dow Jones, the government bonds and the DAX index, they are applied to construct dynamic conditional correlations between the daily returns of Bitcoins and German & Spanish 10 year government bonds."

Here is a link to the document: http://www.scribd.com/doc/151033410/A-Quantitative-Analysis-of-Bitcoins-pdf

I hope you will find it interesting and helpful.

Kind regards,

Ties van den Ende

[naphto]

Are you waiting for feedbacks?

[ties.ende]

No, not necessarily, it was already graded, but I thought you guys might find it interesting stuff.

[naphto]

Sounds complicated.
Did not read everything though.

[ties.ende]

The technical details might be a little complicated, but the conclusion is easy to interpret, that is:

Although the recent popularity of Bitcoins is often attributed to its independence of the European/international banking system, this research has shown that the daily return of Bitcoins is positively correlated with the daily return of Spanish 10 year government bonds, and negatively correlated with the daily return of German 10 year government bonds, which contradicts the assumptions that Bitcoins are bought more often as a reaction to the Euro crisis.Moreover, the observations indicate that Bitcoins do not behave independent from the real financial world at all, in fact, there is a clear distinction between the relation of Bitcoins with presumed volatile assets, and the relation of Bitcoins with assets that are deemed trustworthy, that is, the returns of the exchange rate of Bitcoins are positively connected to the returns of the volatile asset under consideration, the Spanish 10 year government bonds, and negatively connected to the returns of the safe asset under consideration, the German 10 year government bonds.

[pand70]

The only purpose of a bachelor's thesis is for the student to become familiar with the
process of writing a thesis,a paper or anything else that is to be published.Nothing more, nothing less.

Grats on you finishing your studies but there isn't any real value in what you wrote whatsoever.

[naphto]

The only purpose of a bachelor's thesis is for the student to become familiar with the
process of writing a thesis,a paper or anything else that is to be published.Nothing more, nothing less.

Grats on you finishing your studies but there isn't any real value in what you wrote whatsoever.

lol, don't be so mean!
Did you actually read it?

[ties.ende]

The only purpose of a bachelor's thesis is for the student to become familiar with the
process of writing a thesis,a paper or anything else that is to be published.Nothing more, nothing less.

Grats on you finishing your studies but there isn't any real value in what you wrote whatsoever.

It is a QUANTITATIVE analysis, not a QUALITATIVE, hence, although I agree on your vision on the purpose of a bachelor's thesis, some calculations have been made which are  undisputable as well as unique, in that sense, that these calculations have never been done before for the Bitcoins scheme.

Try and read it, the conclusions based on this QUANTITATIVE analysis might surprise you.

[pand70]

lol, don't be so mean!
Did you actually read it?

Actually yes i dit since i m familiar with time series.
I wish i was reading random comments below bieber's youtube videos instead...

[jonoiv]

interesting read..

although here in England, we are quite often graded in University based on the ability of our work to be understood by the layman regardless of content.  I personally have very limited knowledge of economics, and didn't really understand your work.  I wrote my dissertation on the psychology of perception and it's uses in the CGI industry.  If someone who knew nothing of the subject, read my dissertation they would probably understand the concepts and principles.  I don't mean to offend you, you are clearly a cleaver person, but this was a difficult read!

[andylondon]

I will read, great research, we need more analysis of BTC vs. other instruments.